Average rents hit £1,000 for the first time

Average rents hit £1,000 for the first time

9:14 AM, 15th May 2023, About 12 months ago 3

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Tenants moving into a newly let property are facing average rents outside of London of more than £1,000 for the first time, data reveals.

Hamptons says renters are facing a £1,002 bill and in April, that was £72 or 7.8% more than it was in April 2022.

The real estate firm also highlights that the milestone has been achieved in less than three after the average rent for Great Britain reached the same figure.

However, renters in London have also seen the average rent soar past £2,200 for the first time with annual rent growth of 17.2%.

‘The average rent across the whole of Great Britain’

Hampton’s head of research, Aneisha Beveridge, said: “It was back in July 2020 that the average rent across the whole of Great Britain – including London – last passed the £1,000 mark.

“But just 34 months later, soaring rents since Covid have meant that the average rent in the regions outside of London has passed that same milestone.

“While rents nationally saw their second biggest annual rise in April, they’ve still failed to keep pace with wider inflation for nine of the last 12 months.”

‘Tenants will face the choice of staying put’

Ms Beveridge continued: “With rents on the open market rising quickly, tenants will face the choice of staying put or moving to a smaller home in a more affordable area.

“While anyone choosing to sit tight tends to face smaller rental increases than those moving home, they are not immune.

“Affordability constraints will likely hit the brakes on rental growth at some point this year, however, it’s unlikely to slow considerably due to the number of landlords looking to pass on their rising costs.”

Average rents are now 26% higher

The data shows that outside of London, average rents are now 26% higher than before the Covid pandemic in February 2020.

This means that tenants are paying an extra £868 a year and the average rent is now more than £1,000 in three of the 10 monitored regions outside of London.

Those regions are the East of England, the South West and the South East.

Across Great Britain as a whole, rents rose 11.1% year-on-year in April to reach a new high of £1,249 – the second strongest month for rental growth on record.


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Comments

JB

12:16 PM, 15th May 2023, About 12 months ago

What exactly is average rent? Mean, median or mode?

Does it take into account the type of property? Are HMO's included?

GLee

6:05 AM, 16th May 2023, About 12 months ago

Is it £1000 per person or per house? If per house, how many rooms? How about room sizes? Are we talking adult sharers (all need double rooms > 6.51 sqm) or family (children under 10 can have room less than 6.51 sqm)? Whole notion is totally flawed and these figures are meaningless unless they can qualify them.

Christopher Lee

6:07 AM, 16th May 2023, About 12 months ago

Reply to the comment left by JB at 15/05/2023 - 12:16
It probably comes from this index and likely just a mean.
https://www.hamptons.co.uk/research/rental-index-data#/

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